Hiran H. Senewiratne hsenewiratne@gmail.com
Lanka IOC (LIOC) will not be reducing local petroleum prices despite world oil prices going down. At present world oil prices have come down to US$ 60 a barrel.
The company’s loss per litre loss has come down to Rs. 15 from the earlier loss of Rs. 30. However the company is still incurring a Rs. 15 loss per litre, LIOC’s Senior Vice President (Finance) Anuj Jain said.
“From January this year the new government reduced fuel prices by Rs. 48 per liter and also increased the Customs Duty by Rs. 25 per liter. This made the company incur a loss of Rs 30 per every single litre we sold.
With the world market price drop we were able to reduce the loss by Rs. 15 for a litre,’ Jain told the Daily News Business.
The company imports 20,000 tonnes of oil into the country for a month and enjoys a 20 percent market share. Therefore the company is not in a position to reduce local oil prices at any cost but will go ahead with the retail business expansions in the country, Jain said.
The LIOC said it had written to the Ministry and the Treasury, expressing their concern over the continuous losses faced after the government reduced prices in January this year.
According to reports, the LIOC had to bear a loss of Rs. 25 to 30 per litre of petrol due to the current pricing. Accordingly, the price of a barrel of crude oil was US$ 45 when fuel prices were reduced in January and it had now increased to US$ 60.
Ceylon Petroleum Corporation (CPC) also stated that they had recorded losses during the past few months after the government reduced fuel prices in January.
www.dailynews.lk
Lanka IOC (LIOC) will not be reducing local petroleum prices despite world oil prices going down. At present world oil prices have come down to US$ 60 a barrel.
The company’s loss per litre loss has come down to Rs. 15 from the earlier loss of Rs. 30. However the company is still incurring a Rs. 15 loss per litre, LIOC’s Senior Vice President (Finance) Anuj Jain said.
“From January this year the new government reduced fuel prices by Rs. 48 per liter and also increased the Customs Duty by Rs. 25 per liter. This made the company incur a loss of Rs 30 per every single litre we sold.
With the world market price drop we were able to reduce the loss by Rs. 15 for a litre,’ Jain told the Daily News Business.
The company imports 20,000 tonnes of oil into the country for a month and enjoys a 20 percent market share. Therefore the company is not in a position to reduce local oil prices at any cost but will go ahead with the retail business expansions in the country, Jain said.
The LIOC said it had written to the Ministry and the Treasury, expressing their concern over the continuous losses faced after the government reduced prices in January this year.
According to reports, the LIOC had to bear a loss of Rs. 25 to 30 per litre of petrol due to the current pricing. Accordingly, the price of a barrel of crude oil was US$ 45 when fuel prices were reduced in January and it had now increased to US$ 60.
Ceylon Petroleum Corporation (CPC) also stated that they had recorded losses during the past few months after the government reduced fuel prices in January.
www.dailynews.lk
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